In consolidated financial statements, a non-controlling interest is simply a part of the share capital of a subsidiary which is owned by a third party, i.e. it is not owned by any member of the group.
The consolidated income statement of the group presents allocation of the net profit between shareholders of the parent company (parent company is the one producing consolidated financial statements), and non-controlling interest.
The ‘paradox’ is that where a non-controlling interest might represent, let’s say, 10% of share capital of a subsidiary, the consolidated net profit attributable to non-controlling interest might represent a different percentage of consolidated net profit.
How do you resolve this ‘paradox’?